International trade is a thorny subject at the moment. Following the UK’s decision to leave the European Union, new trade agreements will need to be nurtured as Brexit kicks in and the Government invokes Article 50.
Arguably, exporting is now more important than ever for manufacturing companies, but where do you start? Dave Tudor spoke to Lesley Batchelor, director general of the Institute of Export & International Trade (IOE&IT).
Probably the most significant knee-jerk reaction to the referendum result last June was the practically overnight devaluation of the Pound. As I write this, you’ll get €1.15 for every Pound; a year ago, the figure would have been €1.33.
Trading successfully on the international stage is a complex beast, but in very basic, top level terms, it’s regarded as good to export at the moment – whether you offer a product or a service –because for overseas buyers UK pricing is attractive because of a favourable exchange rate. And of course there are the benefits for the wider economy.
Conversely however, it’s more expensive to import and this directly affects many UK machine tool agents that are buying from their principals overseas. Fifty years ago, when the UK was the machine tool manufacturing centre of the universe and we produced everything on home soil, we’d have been laughing. But times change. Another downside is that imported raw materials are now more expensive so the decision to consider exporting is by no means an exact science. It won’t be for everybody and there’s no one size fits all scenario here but undoubtedly, for some businesses, it may represent a total gamechanger in terms of new opportunities.
Rich heritage
Shaping policy and decision making at the highest levels, Lesley Batchelor OBE is not only director general of the Institute of Export & International Trade and ultimately responsible for its 2,500 members – she’s also a member of the Advisory Panel, an active member of both the All Party Parliamentary Group on Trade & Investment and the All-Party Manufacturing Group. She also gives evidence to the House of Lords Select Committees on various issues affecting international trade and government support for SMEs.
“The IOE&IT started in 1935 and we have a long heritage in helping businesses succeed in the export market,” she explains. “Fundamentally, we have three primary objectives: to promote best practice and help companies market their products and services internationally; to maintain standards through education and qualifications; and disseminate relevant, pertinent and applicable information to or members.
The Institute of Export & International Trade is predominantly a membership-based association although it does offer consultancy and courses on a more ad-hoc basis. “Our joining criteria to become a Full Member is actually quite stringent,” Ms Batchelor affirms, “but we do offer a Business Membership option for companies employing up to 49 people which is very competitively priced. All that is required are two references on the application form.
Exclusive discount
The IOE&IT is currently offering a Small Business membership discount exclusively for PES readers. By referencing the code PES100 at http://www.export.org.uk/ioe-membership/business-membership companies can receive a £100 discount off the normal price of £250.
For businesses looking to find out more about exporting, this represents excellent value. As a member, companies will have access to training, services and expert advice as well as regular newsletters and bulletins, a free business helpline and discounted rates on training and translation services – evidence clearly shows that a business is four times more likely to sell if it speaks to customers in their local language. Membership will also enable networking with other like-minded businesses through special interest groups, group conferences and webinars.
Membership to the IOE&IT is actively encouraged, but some companies may simply need a helping hand to get started. Ms Batchelor recommends visiting the ‘Open to Export’ interactive website (www.opentoexport.com) of which the IOEIT is the founding member.
“The website is packed full of useful information, providing a ‘step by step’ journey for companies looking to break into exporting, covering essential aspects such as selecting markets, reaching customers, delivery and documentation, pricing and getting paid,” she says.
“But there’s also a competition on the site where participants develop and submit their Export Action Plan for the chance to win £3,000 cash, a website overhaul and translation services. If you make the final, you get the opportunity to pitch your export plans to a panel of high profile judges and gain great publicity for your brand around the competition – we think that’s invaluable.”
Simply explained, the Export Action Plan is an intuitive online planning tool on the site which takes the user through the five key steps essential for exporting success. Its interactive format means tasks are established, actions are documented, and timescales are set. On successful completion, an Export Action Plan is automatically generated – “a brilliant showpiece to take to your bank, business advisor or international trade advisor,” according to Ms Batchelor.
The nice thing is that the Export Action Plan doesn’t have to be completed in one hit. Pages are automatically saved every time changes are made so it can ‘evolve’. For small businesses interested in entering the competition, it is now live with an entry deadline of 24th February. If that’s too soon, similar competitions are planned throughout 2017 with the next one scheduled for June.
Educate to accumulate
Ms Batchelor is keen to emphasise that the primary role of the IOE&IT is to educate so that companies can make their own decisions regarding embarking on the export journey: “To use an analogy, our remit is to provide the fishing rod rather than the fish,” she states. “We recommend that businesses take some training with us or ideally appoint an export champion to enrol on one of our Ofqual-approved education programmes and gain a formal qualification which involves online study with tutor support. Again, there are various levels of study but this is a serious qualification that can escalate to degree level with partner universities to satisfy even the most ambitious of businesses. It’s as in-depth as you need it to be.
“Exporting can be challenging but if you’re equipped with the right knowledge on how to succeed, everything is so much easier. We hope that clients stay with us for the entire journey but some may prefer to dip in and out as required. We can advise on everything from setting up contracts, logistics and compliance through to intellectual property issues, marketing, pricing and getting paid.
“There’s a ton of general information out there about exporting and the Government will try and imply it’s simple – but of course it isn’t,” she warns. “We’ll work with you and advise what’s best for your individual situation. You wouldn’t go out and buy a new car without undertaking a degree of research – and exporting is no different.”
Institute of Export & International Trade (IOE&IT) www.export.org.uk
Open to Export www.opentoexport.com
IOE&IT Membership www.export.org.uk/ioe-membership/business-membership
Special offer For any company looking to enhance its export business, joining the Institute of Export & International Trade will ensure you’re kept up to date with all the latest news; provide access to a dedicated helpline; and secure preferential pricing on training and qualifications.
Normally, Small Business Membership would cost £250 a year but in an exclusive deal for PES readers, this is available for just £150. Simply reference discount code PES100 on application: www.export.org.uk/ioe-membership/business-membership
